Dive Brief:
- The city of Dallas will partner with Hazel AI to “enhance the quality and consistency” of the city’s solicitation documents, it said in a news release. It says it is the first major city in Texas to use AI for procurement.
- The initiative is part of a larger shakeup to the city’s Office of Procurement Services, which identified $1 million in budget savings “by reducing City costs for staff.”
- “Our partnership with Hazel allows us to increase competition, enhance transparency, and expand access for small and local businesses delivering smarter, faster, and more inclusive outcomes for the City of Dallas,” Juanita Ortiz, Dallas’ director of procurement services, said in a statement.
Dive Insight:
Major U.S. cities across the country are starting to incorporate AI into their workflows.
New York City was among the first to establish an AI Action Plan for city workers in 2023. San Francisco Mayor Daniel Lurie recently announced the city would grant AI access to 30,000 employees.
A 2025 Granicus survey of more than 1,400 government employees found that 40% used AI tools, predominantly for research (62%) and meeting minute summaries (25%).
AI developers are eyeing local government procurement processes, with companies like Authorium, OpenGov and Appian releasing AI procurement products within the past few years. A 2024 Deloitte survey of chief procurement officers found that 92% were exploring the use of generative AI.
“AI has fundamentally transformed the public procurement landscape,” Steve Isaac, director of marketing for Procurated, wrote in American City & County last year.
Dallas’s procurement office plans to leverage Hazel AI for drafting solicitations, identifying vendors, highlighting local and small businesses, and ensuring compliance with legal requirements.
Hazel AI, founded in 2024, also contracts with the Tempe Union High School District in Arizona and the Naval Air Warfare Center, according to its website.
